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New Jersey home sellers should not overlook the New Jersey Realty Transfer Fee when calculating closing costs and net proceeds. It's not a nominal fee, but it's not an "exit fee," either.
Wondering what your real estate closing costs will be when you sell your home?
Yes, you will have to pay off any mortgages you have on the home. Yes, there will be a real estate brokerage fee if you use the services of a Real Estate Broker in the marketing and sale of the home. And yes, in all likelihood, you will use an attorney and there will be an attorney fee for services rendered throughout the real estate transaction.
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Those fees will be paid from the sale proceeds at closing of title in addition to some other expenses, such as real estate taxes and mortgage interest prorated as of the closing date, mortgage cancellation fees and perhaps some other expenses or fees related to the real estate transaction or closing of title.
Oh yes, there is one other expense for home sellers of New Jersey properties, and that is the New Jersey Real Estate Transfer Fee. This fee is not an "exit tax", but it is a fee charged to all sellers of properties in New Jersey, whether the seller currently resides in New Jersey or not. It is collected at closing of title and is paid to the New Jersey Treasury Department. The proceeds from the Realty Transfer Fee provide support for the Public Health Priority Fund, shore protective initiatives, housing programs, extraordinary special education and municipal aid and direct aid to New Jersey Counties.
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So what does the New Jersey Realty Fee cost a home seller in New Jersey? It is not a nominal fee! The fee is based on sale price. The higher the sale price, the larger the transfer fee. There are two home seller fee schedules one for Senior Citizens (62 years of age and older) and one for everyone else.
For your review, I am providing links to worksheets to calculate the Transfer Fee for New Jersey properties.
For more information regarding closing costs on the sale of a home, it is recommended you contact your realtor or attorney.
Don't overlook the New Jersey Realty Transfer when calculating net proceeds in the sale of a home in New Jersey!